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Teradyne (Teradyne) EBIT

: $529 Mil (TTM As of Dec. 2023)
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Teradyne's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $141 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $529 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Teradyne's annualized ROC % for the quarter that ended in Dec. 2023 was 18.80%. Teradyne's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 44.68%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Teradyne's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 3.47%.


Teradyne EBIT Historical Data

The historical data trend for Teradyne's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Teradyne Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EBIT
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 548.00 925.20 1,178.78 844.10 529.38

Teradyne Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
EBIT Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 196.25 98.07 145.45 145.24 140.62

Competitive Comparison

For the Semiconductor Equipment & Materials subindustry, Teradyne's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Teradyne EV-to-EBIT Distribution

For the Semiconductors industry and Technology sector, Teradyne's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Teradyne's EV-to-EBIT falls into.



Teradyne EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $529 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Teradyne  (NAS:TER) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Teradyne's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=521.396 * ( 1 - 16.27% )/( (2319.711 + 2323.603)/ 2 )
=436.5648708/2321.657
=18.80 %

where

Invested Capital(Q: Sep. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3370.655 - 334.413 - ( 716.531 - max(0, 640.659 - 2099.359+716.531))
=2319.711

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3486.824 - 343.496 - ( 819.725 - max(0, 659.951 - 2162.035+819.725))
=2323.603

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Teradyne's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=562.468/( ( (515.427 + max(783.724, 0)) + (518.909 + max(699.881, 0)) )/ 2 )
=562.468/( ( 1299.151 + 1218.79 )/ 2 )
=562.468/1258.9705
=44.68 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(455.878 + 322.632 + 604.318) - (334.413 + 109.445 + 155.246)
=783.724

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(422.124 + 309.974 + 610.212) - (343.496 + 99.804 + 199.129)
=699.881

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Teradyne's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2023 )
=529.378/15239.454
=3.47 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Teradyne EBIT Related Terms

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Teradyne (Teradyne) Business Description

Traded in Other Exchanges
Address
600 Riverpark Drive, North Reading, MA, USA, 01864
Teradyne provides testing equipment, including automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronics systems and wireless testing for devices. The firm entered the industrial automation market in 2015, into which it sells collaborative and autonomous robots for factory applications. Teradyne serves numerous end markets and geographies directly and indirectly with its products, but its most significant exposure is to semiconductor testing. Teradyne serves vertically integrated, fabless, and foundry chipmakers with its equipment.
Executives
Brad Robbins officer: President, LitePoint Corp. C O LITEPOINT, 965 WEST MAUDE AVE, SUNNYVALE CA 94085
Richard John Burns officer: President, Semiconductor Test MINDSPEED TECHNOLOGIES, INC., 9 TECHNOLOGY DRIVE, WESTBOROUGH MA 01581
Ujjwal Kumar officer: President, Teradyne Robotics C/O TERADYNE, INC., 600 RIVERPARK DRIVE, NORTH READING MA 01864
Sanjay Mehta officer: VP and Chief Financial Officer C/O TERADYNE INC., 600 RIVERPARK DRIVE, NORTH READING MA 01864
Mercedes Johnson director MICRON TECHNOLOGY, INC, 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716
Charles Jeffrey Gray officer: VP, General Counsel, Secretary 600 RIVERPARK DRIVE, NORTH READING MA 01864
Mark E Jagiela director, officer: President and CEO 321 HARRISON AVE, C/O TERADYNE INC, BOSTON MA 02118
Ernest E Maddock director LAM RESEARCH, 4650 CUSHING PARKWAY, FREMONT CA 94538
Peter Herweck director 600 RIVERPARK DRIVE, NORTH READING MA 01864
Paul J Tufano director C/O SOLECTRON CORPORATION, 847 GIBRALTAR DR., MILPITAS CA 95035
Gregory Stephen Smith officer: President, Semiconductor Test 1 HUCKLEBERRY RD, HOPKINTON MA 01748-1054
Ford Tamer director 3945 FREEDOM CIRCLE SUITE 1100, SANTA CLARA CA 95054
Timothy E Guertin director C/O VARIAN MEDICAL SYSTEMS, INC, 3100 HANSEN WAY M/S E-327, PALO ALTO CA 94304
Marilyn Matz director C/O LOGMEIN, INC., 320 SUMMER STREET, BOSTON MA 02210
Edwin J Gillis director C/O VERITAS SOFTWARE CORP, 350 ELLIS STREET, MOUNTAIN VIEW CA 94043

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